Petrol, Diesel Prices Rise Continues for 16th Straight Day
Petrol and diesel prices continued to rise with the two auto fuels getting dearer by 33 paise and 58 paise per litre respectively on Monday.
 
This is the 16th day of fuel price rise since June 7 when oil companies began the daily price revision mechanism after a hiatus of 83 days during the lockdown.
 
With the latest increase, petrol is being retailed at Rs79.56 per litre and diesel at Rs78.85 a litre in Delhi. This is an increase of Rs8.30 in the the price of petrol per litre since June 7. Similarly, diesel prices have gone up highly by Rs9.46 per litre during the 16 day period.
 
The good news is that auto fuel price rise may either stop or the quantum of increase could fall in the coming week as oil companies have now priced the products closer to international benchmark rates. There could be days when prices are not changed by oil companies. Already, the daily increase in price of petrol has fallen to 33 paise per litre level.
 
Sources in oil marketing companies, however, said that price rise could continue for few more days as global product prices are firming up with a pick up in demand following opening up of economies across the globe post COVID-19 related lockdown. Even global crude prices have more than doubled from April levels to over $42 a barrel level.
 
Also, OMCs are catching up on price levels that bring the product prices closer to international benchmark rates. The price freeze of 83 days even with a substantial increase in excise duty on petrol and diesel by the Centre, has increased the price gap resulting in losses on sale of product for OMCs.
 
Prices of transportation fuel were last revised under the dynamic pricing policy on 16th March and there were few instances of price hike later only when the respective state governments hiked VAT (value added tax) or cess.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
Comments
rs235m
6 years ago
Reducing the interest rates on fixed deposits of banks and post offices and raising petrol diesel prices seem to be the easy ways to fill government coffers.To cover Covid expenses, government should have taken loan from world bank or IMF and repay over the next 5years.If black money from Switzerland was brought as promised,there would not have been any necessity to put the burden on common man. Why should public bear the burden of NPA, bank loot,Covid ,flood ,famine, earthquake etc?
Ramesh Popat
6 years ago
indirect covid attack! inflation will show its ugly face shortly!
will move middle class to corner!
rs235m
Replied to Ramesh Popat comment 6 years ago
Reliance is the biggest beneficiary of rock bottom crude price and fleecing of common man
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